HR 363 — A Resolution directing the Joint State Government Commission to study the impact of private equity in child care and make recommendations for limiting negative effects.

PRINTER'S NO.    2571

                  THE GENERAL ASSEMBLY OF PENNSYLVANIA



           HOUSE RESOLUTION
              No. 363
                                              Session of
                                                2025

     INTRODUCED BY SHUSTERMAN, HILL-EVANS, WAXMAN, HANBIDGE, FREEMAN,
        MERSKI, OTTEN, SANCHEZ, HOWARD AND GREEN, OCTOBER 31, 2025

     REFERRED TO COMMITTEE ON CHILDREN AND YOUTH, NOVEMBER 6, 2025


                               A RESOLUTION
 1   Directing the Joint State Government Commission to study the
 2      impact of private equity in child care and make
 3      recommendations for limiting negative effects.
 4      WHEREAS, Child care staffing recruitment has proven difficult
 5   due to inadequate pay, resulting in a decreased supply of child
 6   care in recent years, despite steady demand; and
 7      WHEREAS, With the high costs of child care, parents are
 8   unable to pay more than they are currently spending; and
 9      WHEREAS, As independent and nonprofit child care providers
10   struggle to maintain their programs due to financial hardships,
11   programs supported by private, for-profit companies are making
12   significantly higher profits while consistently increasing fees
13   for parents; and
14      WHEREAS, As private equity firms partner with the child care
15   industry, the firms are able to make a profit through serving
16   middle, upper-middle and affluent families, allowing them to
17   increase the cost of child care while prioritizing enrollment
18   and reducing operational costs and maintaining low staff
 1   salaries, causing high staff turnover rates; and
 2      WHEREAS, Another tactic used by private equity firms is
 3   receiving the proceeds from a child care center selling its
 4   property, leading to the child care center leasing the property
 5   from the private equity firm, leaving the child care center in
 6   debt while the private equity firm receives the proceeds; and
 7      WHEREAS, Additionally, child care providers across the nation
 8   are reporting higher liability insurance costs, reduced coverage
 9   and policies being dropped by insurance companies; and
10      WHEREAS, Liability insurance is necessary for child care
11   providers to protect themselves from financial loss, lawsuits,
12   injuries and accidents; and
13      WHEREAS, Furthermore, when child care centers have to pay
14   more for insurance, these costs are often passed on to parents
15   through increased tuition; and
16      WHEREAS, Without liability insurance, child care providers
17   take on the risk of losing their license, closing their business
18   or serving fewer families; and
19      WHEREAS, As liability insurance is increasing, child care
20   centers have to determine whether to pay for the rising
21   insurance costs, close their business or risk operating without
22   it; and
23      WHEREAS, It is important that the impact of private equity
24   firms operating in the child care industry is analyzed and
25   understood in order to ensure that the best interests of
26   children are prioritized and parents are provided affordable
27   child care; therefore be it
28      RESOLVED, That the House of Representatives direct the Joint
29   State Government Commission to study the impact of private
30   equity in child care and make recommendations for limiting

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 1   negative effects; and be it further
 2      RESOLVED, That the Joint State Government Commission study
 3   the reasons for and the impact of rising liability insurance
 4   rates on child care facilities; and be it further
 5      RESOLVED, That the Joint State Government Commission examine
 6   actions taken by other states to evaluate the outcomes of
 7   private equity firms involved with the child care industry and
 8   limit negative effects of this partnership, along with how other
 9   states are addressing liability insurance for child care
10   facilities to mitigate risks; and be it further
11      RESOLVED, That the Joint State Government Commission issue a
12   report with its findings and legislative recommendations to the
13   House of Representatives within 12 months of the adoption of
14   this resolution.




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